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The supply curve( long-run ) of a perfectly competitive firm

    a. is equal to that portion of the long-run marginal cost curve that is above the relevant short-run average variable cost curve.    b. is equal to that portion of the long-run marginal cost curve that is above the relevant short-run average total cost curve.    c. is equal to that portion of the long-run average total cost curve that is above the relevant short-run average variable cost curve.    d. None of the above is correct.

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Question added by Vinod Jetley , Assistant General Manager , State Bank of India
Date Posted: 2015/06/07
Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

b. is equal to that portion of the long-run marginal cost curve that is above the relevant short-run average total cost curve.

Ahmed Mohamed Ayesh Sarkhi
by Ahmed Mohamed Ayesh Sarkhi , Shared Services Supervisor , Saudi Musheera Co. Ltd.

I Will Go With Option B " ..

Kader Hasan Maraicar
by Kader Hasan Maraicar , Executive Assistant , Noor Enterprises

In perfect competition, supply is determined by Marginal Cost. That is, firms will produce additional output while the cost of producing an extra unit of output is less than the price they would receive. so, option

b. is equal to that portion of the long-run marginal cost curve that is above the relevant short-run average total cost curve.    

Deleted user
by Deleted user

I chose option ------- B

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Khaled Anwar
by Khaled Anwar , Senior Sales Engineer , "Automotive company''

The answer is : Option ( B ) 

khaled elkholy
by khaled elkholy , HR MANAGER , misk for import & export

b. is equal to that portion of the long-run marginal cost curve that is above the relevant short-run average total cost curve. ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,